Escrow closing statement shows debits and credits for buyer and seller. Which statement is correct?

A is incorrect because a new mortgage is not a debit to the buyer - it's actually a credit that offsets the purchase price. The debit would be the down payment portion the buyer pays out-of-pocket.

B is incorrect because prepaid property taxes are a credit to the seller, not a debit. The seller receives a credit for taxes they've already paid but won't use (they won't own the property for that period).

C is incorrect because discount points paid by the buyer are a debit to the buyer, not a credit. Points are prepaid interest that increases the buyer's closing costs.